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King Dollar; Breaking key support levels

Cory
May 22, 2017

I hope everyone one in Canada is having a great long weekend! My wife and I had a busy weekend in Toronto at a good friend’s wedding. There were a lot of mining people at the wedding and I was able to learn about a couple new companies that I will be introducing to you all in the coming weeks.

We are currently at airport in Toronto traveling down to Washington DC to visit with Congressman Walter Jones. I am very excited to meet the Congressman tomorrow! In the meantime posting will be light this week but I will be sure to have some market updates all week. Below is a great update from a new guest to the show Chris Kimble. He outlines the current breakdown in the USD due to the Euro strength.

I highly recommend visiting Chris’s site and at the very least signing up for his free emails. Click here to visit Chris’s site.

The US Dollar (CURRENCY:USD) has shown strength versus the Euro (CURRENCY:EUR) since 2008, with the “meat” of that strength coming in the last 3 to 4 years. This strength worked as a headwind for precious metals, emerging markets, and at times, the domestic economy.

But that market dynamic is at a crossroads… and may be nearing a turning point.

A currency “shift” here would have short- to intermediate-term consequences for various assets across investors portfolios. So investors need to stay tuned.  This could also usher in some volatility, as traders look to re-align their currency hedges and interests.

As you can see in the chart below, the US Dollar hit dual resistance at the same time that the Euro hit dual support. And currently the Dollar is attempting to break a key rising support trend line. This comes at the same time that the Euro is attempting to breakout over key downtrend price resistance.

Could these reversal patterns mark a turning point in the global markets for traders?

Discussion
52 Comments
    May 22, 2017 22:01 AM

    Block chain in rocket ship mode. First stop da Moon. Next stop? MARS!

    May 22, 2017 22:04 AM

    GLAD to see you are travel to see WALTER JONES…………let us know how everything goes………ootb

      May 22, 2017 22:05 AM

      travel to traveling

    May 22, 2017 22:06 AM

    Bitcoin…….$2244……..rockets red glare……..

      May 23, 2017 23:29 AM

      I have some Beanie Babies you can buy

        May 23, 2017 23:20 AM

        You better check out the price on first addition “Princess Di”……. 🙂

    b
    May 22, 2017 22:49 AM

    wow. i wonder if it really will get to 10k.

    GH
    May 22, 2017 22:00 PM

    Off topic, this is the best narrative I’ve seen explaining Comey and all the Russian election hacking hot air:

    http://operationdisclosure.blogspot.ca/2017/05/trump-dropping-hammer-on-comey.html

    If correct, then I say very well played by Trump, and thank God, because the Clintons and all participating in this farce are a blight on humanity. That includes trolls and morons taking constant potshots at Trump, either not caring or not understanding that there are far bigger issues at play than Trump’s perceived shortcomings.

      May 22, 2017 22:23 PM

      Comey has to much dirt under his fingernails……..Clinton con man…….check out his history……..the guy need to go to jail…….

      May 22, 2017 22:39 PM

      GH…Thanks for that item. It’s a long read,but well worth it.

      May 22, 2017 22:12 PM

      Thanks GH. Fantastic article about Comey who is now on the Clinton hit list. Go Trump!

    May 22, 2017 22:47 PM
    May 22, 2017 22:34 PM

    Peter Schiff sells company to Soros…………sgtreport……….????????????????

      May 22, 2017 22:36 PM

      Soros owns BItgold…………

        May 22, 2017 22:37 PM

        Anybody got any news on this one………..?????

          GH
          May 22, 2017 22:04 PM

          No, but I’ve also been told by a South American miner that Soros has various interests in gold mines in S. America.

            May 22, 2017 22:51 PM

            Thanks for the reply………Things are always changing …..I will not be listening to Peter anymore, but, I have not listened to him for a couple of years……guru no more…

            b
            May 22, 2017 22:08 PM

            no need to listen to schiff, “buy gold”, pretty much covers it.

            May 22, 2017 22:11 PM

            Now that he pumped the heck out of gold, he hauls in the profits from soros…….lol

          May 22, 2017 22:58 PM

          All about it. Markedtofuture post.

          https://www.youtube.com/watch?v=tuIKDrNWCxQ

            May 22, 2017 22:07 PM

            Thanks Chartster……..appreciate…..

            May 22, 2017 22:33 PM

            Schiff, Sprott, Turk,,Bass, and Soros………Kettle of stinking fish……

            May 22, 2017 22:41 PM

            University of Texas supporters, grads and employees should be real happy to hear that there fund manager is a CROOK.

            May 22, 2017 22:42 PM

            NEED TO START A WALL OF SHAME GOLD GURU LIST…….

            May 22, 2017 22:06 PM

            Wall of shame, good one! The table sure is small on the guru list… Al and Cory do a great job here with some very qualified people. The Doc is #1.

            May 22, 2017 22:40 PM

            It’s all much ado about nothing, in my book. I guess it doesn’t occur to anyone that Soros’s interest in Goldmoney might have something to do with the fact that gold has a very bright future in the years and decades ahead and that Turk’s patent and business model is very valuable.

            As for the involvement of Sprott and the others, you have to be silly to think that mutually beneficial business deals have ever hinged on who the parties might be. Business is business and you’ll keep it that way if you want to do much of it.

            You will run out of companies to invest in very quickly if you decide that you have to like every major shareholder before you’ll take a position.

            May 23, 2017 23:24 AM

            Matt……..I like you thought on “business is business”…….in other words screw the other guy as much as possible……..lol

            May 23, 2017 23:25 AM

            I like doing business with people I can Trust…….which are very few……….

            May 23, 2017 23:32 AM

            I have owned a lot of businesses……….and the first rule is “the customer is always right”
            Something is wrong when one has to lie concerning an investment/business, to gain the advantage OVER THE CLIENT/CUSTOMER…..Continue doing business with a known crook/liar is stupidity………………….JMO

            May 23, 2017 23:36 AM

            THE LOVE of MONEY…….is the ROOT of all Evil……..

            May 23, 2017 23:08 AM

            Re: “doing business with a known crook/liar is stupidity”

            That depends on the nature of the business you’re doing, Jerry. Risk is what matters and I doubt that Soros’s involvement in GM elevated anyone’s risk. Why would Turk or any of those guys turn down a fair offer?

            I don’t know about you, but, generally speaking, I would prefer to sell my shares to “crooks/liars” since I aim to sell as close to a top as possible. You don’t want good guys to play bag-holder, do you? 🙂

            May 23, 2017 23:10 AM

            Btw, ignorance is the root of all evil; history makes that perfectly clear.

            May 23, 2017 23:11 AM

            PUMP and DUMP……..is more of what I was thinking……… 🙂

            May 23, 2017 23:12 AM

            For my people are lost…. because of the LACK OF KNOWLEDGE….

    May 22, 2017 22:06 PM

    Trump mentioned several times in Russia dealings.

    https://m.youtube.com/watch?feature=youtu.be&v=UkcxeJCPgz0

      May 22, 2017 22:37 PM

      great summary on the clinton pedesta swamp creatures…….

    May 22, 2017 22:12 PM

    I think bitcoin crashes before it gets to the moon. Like Rob said the other day, we all know what happens when things go curvelinear. We shall see.

    The US $ does appear to have broken key support levels but I just wonder how “key” those levels are in these times of many outside influences constantly arising in the various matkets?

    ASF
    May 23, 2017 23:34 AM

    All of the dollar’s gains since Trump’s election are now gone…

    ASF
    May 23, 2017 23:42 AM

    Merkel is saying that the Euro is too low and Trump is saying that the dollar is too high. And the prospect of rate hikes in the U.S. is not supporting the dollar even in advance of the (expected) hikes. One has to wonder happens if Merkel gets her way and the Euro actually appreciates and the market begin to factor in the end of U.S. rate hikes…

    May 23, 2017 23:57 AM

    Oil prices fall on White House proposal to sell U.S. oil reserves

    Reuters – May 23, 2017

    https://finance.yahoo.com/news/oil-prices-fall-white-house-040219365.html

      CFS
      May 23, 2017 23:00 AM

      i’m not seeing any significant price change. I wonder if the reporter actually looked at a price chart!
      I would not expect significant price movement ahead of the OPEC meeting.

        May 23, 2017 23:05 AM

        Oil was down in the overnight and pre-markets but has rallied back.

    May 23, 2017 23:58 AM

    Silver at $17.23 (still trending up BTW)

    Gold at $1261

    Platinum $955

    Palladium $771

      May 23, 2017 23:52 AM

      And miners doing essentially nothing in response. Typically that isn’t a bullish indicator.

    May 23, 2017 23:10 AM

    With SLV’s weekly stochastics coming out of oversold, I would think it should be able to tag or get very close to the 20 WMA at 16.56.

    May 23, 2017 23:13 AM

    Look at poor EXK. The only thing holding it up is the 100 WMA at 3.04. Once (if) that gives way, the next target would be the lower weekly bollinger (20,2) at 2.34.

    Someone is definitely unloading/shorting into any strength whatsoever.

      May 23, 2017 23:22 AM

      The GDXJ is still liquidating a number of stocks up until June 17th. That is one of the factors pressuring a number of the Mid-Tiers and Larger Jrs so much. Stocks not snared up in that are doing much better.

        May 23, 2017 23:30 AM

        Wonderful timing–right after the next FOMC meeting. I honestly expect the 200 WMA to hold more or less, but we could definitely close below that MA for a couple of weeks.

    May 23, 2017 23:15 AM

    The 2 hour chart is key for EXK. It needs to hold that 3.05 level or else it’s good night irene.

    May 23, 2017 23:26 AM

    $CDNX weekly chart–can the stochastics get back to overbought levels? Also note the bollinger band width, which is very narrow. Do we stay narrow for a couple of more months before breaking up/down? (Thanks to Matthew for bringing this chart to my attention.)